GBP/USD continues to edge higher

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Sterling is back in favor today as markets seem to be dialing down their expectations that the UK is heading for the EU exit." 
- ETX Capital (based on WBP Online)


Pair's Outlook 
The Sterling regained the bullish momentum on Friday, as ‘Bremain' vote took the lead. The Cable not only climber over the 100-day SMA that day, but even opened with a rather serious bullish gap today. The British currency retained most of its strength due to the positive EU referendum polls, which could help the exchange rate stabilise above the 1.46 major level. In this case the pair will erase losses for the past two weeks. The weekly R2 is the level to limit the gains, while the upper border is located around 1.4692, represented by the 200-day SMA. Nevertheless, the Pound remains unstable ahead of the EU referendum, thus, the a possibility of the downside development exists. 

Traders' Sentiment 
There are 55% of traders holding long positions (previously 62%). At the same time, the share of sell orders increased from 43 to 56%.
© Dukascopy Bank SA

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